| In May of this year, the Michigan Legislature | | | | fees. |
| passed an amendment that changed the Michigan | | | | The amendment is applicable only when the |
| Pre Foreclosure process. The legislation, which was | | | | property is the borrowers' principal residence. It |
| signed by the governor on May 20, 2009 and | | | | also does not apply to judicial foreclosure actions |
| took effect on July 5, 2009, creates additional | | | | because this process usually takes around one |
| steps before a mortgage can be foreclosed. With | | | | year from the start of foreclosure to the sale of |
| Michigan facing some of the highest foreclosure | | | | the house. The amendment should extend the |
| rates in the nation, lawmakers hope these | | | | foreclosure process between two to four months |
| changes will help homeowners stay in their homes. | | | | longer than before the amendment was enacted. |
| Under the new legislation, foreclosure procedures | | | | The timeline for Michigan pre foreclosure by |
| will not start until 90 days (instead of 30 days) | | | | advertisement is as follows: The borrower is |
| after the initial notice is sent to the borrower of | | | | notified of the default on the home. He/she is told |
| the loan so they can meet with the mortgage | | | | that if they meet and try to work out a loan |
| lender. The written notice must state the reasons | | | | modification with the lender, the lender must stay |
| why the mortgage loan is in default and the | | | | the foreclosure for 90 days. If the borrower does |
| amount owed by the borrower. The borrower | | | | not contact the lender for a meeting, the |
| can demand face to face negotiation and attempt | | | | foreclosure will be published by advertisement 24 |
| to work with the lender on a possible loan | | | | days after the initial notice was sent to the |
| modification. The notice must also provide a list of | | | | borrower. A notice of sale will be published in a |
| housing counselors provided by the Michigan State | | | | local newspaper once a week for four weeks. |
| Housing Development Authority as well as | | | | The trustee or sheriff will conduct the sale at the |
| telephone numbers for local legal aid offices. If the | | | | county courthouse. The redemption period is |
| Lender and Borrower agree on terms of a loan | | | | usually six months from the sale date. The |
| modification within the 90 day period, there can | | | | borrower can pay the winning bid amount and |
| be no foreclosure. Modifications include interest | | | | redeem the property. |
| rates being lowered and reduced or eliminated late | | | | |